Recession Likely in Central
America This Year
Central America may be hit by recession in 2009 if world economic
situation further deteriorates, warns a report of the Monetary
Council of the isthmus released in Guatemala on Tuesday.

The document says that international crisis is quickly hitting the
region by a fall in exports, remittances, tourism and foreign direct
investment.

According to projections in the text, Central American economy will
be less dynamic this year, growing 0-1 percent, but if situation
worsens, the Gross Domestic Product will contract to -1.6 percent.

Here in Guatemala, several sectors have seriously deteriorated,
including trade, with an increase of barely 0.45 percent in 2008
against 14.8 reached in 2007. "There is an obvious economic
slowdown, less consumption because of low purchasing power affecting
the sector," said Jorge Briz, president of the Chamber of Commerce.

Other sectors with negative impact were industry, with a 3.7 percent
growth last year, well below 21.5 percent registered in 2007, and
construction, with 15.6 percent against 60.3 percent.